Global Factoring Services Market Size, Share & Trends Analysis and Forecasts, 2021-2028 - Rise in Cross-border Factoring and the Rapid Development of Factoring Services Across the European Union - ResearchAndMarkets.com

Moreover, the increasing need for an alternative source of financing for Small and Medium Enterprises (SMEs) has also been driving the market growth.

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Monday, January 17, 2022
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Banking, Professional Services, Finance, CAGR, International, Union, COVID-19, Registry, Adoption, Data management, Growth, United Nations Commission on International Trade Law, Small and medium-sized enterprises, Panic, Financial institution, Legal recourse, SME, Science and technology in Asia, Industry, International trade law, UNCITRAL, Category, Domestic, USD, Small, ACID, Real estate, Drug, Cryptocurrency
Geotags: 
CHINA, INDIA, ASIA, ASIAN
Summary
Key Points: 
  • Moreover, the increasing need for an alternative source of financing for Small and Medium Enterprises (SMEs) has also been driving the market growth.
  • Additionally, the implementation of blockchain technology in factoring solutions is likely to help improve the overall supply chain by reducing operational costs for businesses.
  • However, the development of receivables registries is increasing to safeguard from fraud/scam or factoring rules that can guard the industry against unfair regulations.
  • However, the factoring market is expected to rebound gradually in the short as well as the long term.


The "Global Factoring Services Market Size, Share & Trends Analysis Report by Category (Domestic, International), by Type (Recourse, Non-recourse), by Financial Institution, by End-use, by Region, and Segment Forecasts, 2021-2028" report has been added to ResearchAndMarkets.com's offering.

The global factoring services market size is expected to reach USD 5,973.9 billion by 2028, registering a CAGR of 8.4%, from 2021 to 2028

The growth can be attributed to the increasing number of open trade accounts, the expansion of businesses in the Asian market, mainly led by China, the rise in cross-border factoring, and the rapid development of factoring services across the European Union.

Moreover, the increasing need for an alternative source of financing for Small and Medium Enterprises (SMEs) has also been driving the market growth. Additionally, the implementation of blockchain technology in factoring solutions is likely to help improve the overall supply chain by reducing operational costs for businesses.

Several factors are likely to impede the demand for factoring in emerging markets, including archaic regulations hindering the growth of receivables purchase programs, such as the continued use of stamp duty tax, laws limiting the rights of assignment, and foreign currency restrictions.

However, the development of receivables registries is increasing to safeguard from fraud/scam or factoring rules that can guard the industry against unfair regulations. However, the increasing focus of regulators on data management and extensive adoption of real-time payments networks are expected to help in reducing complexities in trade finance.

The increased demand for drafting proper laws to govern factoring transactions, such as the United Nations Commission on International Trade Law (UNCITRAL) Model Law on Secured Transactions, is also expected to boost the market in the coming years.

Furthermore, the rising implementation of digital platforms in trade financing and increasing cross-border trade activities are expected to drive market growth during the forecast period.

However, the COVID-19 pandemic has resulted in travel bans, quarantines, lockdowns, flight cancellations, and increased panic among people, adversely affecting industries and sectors globally. However, the factoring market is expected to rebound gradually in the short as well as the long term.

Factoring Services Market Report Highlights

  • In terms of category, the international segment is expected to register the highest CAGR over the forecast period. This can be attributed to the increasing demand for factoring services from developing nations that focus on increasing their international trade through exports and imports
  • In terms of type, the non-recourse segment is anticipated to register the highest CAGR of 8.7% over the forecast period. Advantages such as full credit cover offered by the financing company are driving the demand for non-recourse factoring amongst SMEs across the world
  • In terms of financial institution, the non-banking financial institution segment is anticipated to register the fastest CAGR from 2021 to 2028. The growth of fintech companies and non-banking financial startups, owing to lenient ease of government regulations in some developing countries, is the prime factor propelling the growth of the segment
  • In terms of end use, the healthcare segment is anticipated to register the highest CAGR over the forecast period. Insurance-related complications and delays in medical bill payment of medical companies or professionals due to bureaucracy in the payment process are likely to accelerate the demand for factoring services in the segment over the forecast period
  • In terms of region, Asia Pacific is anticipated to emerge as the fastest-growing regional market owing to the rapid growth of economies vis-a-vis infrastructural and industrial growth in the region. The region comprises two of the world's most populated countries, China and India, where the demand for factoring services is higher among SMEs. Moreover, China is the key exporter of electronic components, chemical materials, and many other industrial products

Key Topics Covered:

Chapter 1 Methodology and Scope

Chapter 2 Executive Summary

Chapter 3 Factoring Services Industry Outlook

Chapter 4 Factoring Services Category Outlook

Chapter 5 Factoring Services Type Outlook

Chapter 6 Factoring Services Financial Institution Outlook

Chapter 7 Factoring Services End Use Outlook

Chapter 8 Factoring Services Regional Outlook

Chapter 9 Competitive Analysis

Chapter 10 Competitive Landscape

  • Barclays Bank PLC.
  • BNP Paribas
  • China Construction Bank Corporation
  • Deutsche Factoring Bank
  • Eurobank
  • Hitachi Capital (UK) PLC
  • HSBC Group
  • ICBC China
  • Kuke Finance
  • Mizuho Financial Group, Inc.

For more information about this report visit https://www.researchandmarkets.com/r/hr4p1y

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